The new Delta variant delivered a hard blow to the Asian economy. Industrial production in the region is shrinking at a rapid pace. Corporate profit in the region is likely to fall for the first time in six months. Low vaccination rates and a new strain of the coronavirus keep weighing on the region’s economy. Early this year, Asia demonstrated a robust economic recovery from last year’s recession, but a new surge in COVID-19 cases dashed hopes for further improvement. Shops are empty again, factories have shut down, and the prospects for corporate profit growth are dimming. Quarter-on-quarter indicators reveal a slowdown in economic activity. According to Rob Carnell, Asia-Pacific head of research at ING in Singapore, “poor vaccination” is to blame for this. Analysts say that in Q3 2021, Asian biggest companies are likely to post their first profit decline in six quarters which is estimated to be around 6.19%. Norihiro Fujito, the chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo, is sure that “in the near-term, much depends on vaccination progress in Southeast Asia - a major production base - and whether China takes extra steps to support its economy.” The spread of the coronavirus and lockdown measures in Southeast Asia have had a major impact on both the services and manufacturing sectors. IHS Markit data showed that manufacturing activity in the region contracted at the fastest pace in July since June last year.